My response to the question of FXCM being referenced in the above complaint The FXCM referred to in this complaint against James de Wet is the same as Forex Capital Markets LLC the entity where clients open an account when they trade forex with my firm, not FXCM LLC which is a dormant FCM set up to potentially offer futures trading down the road. As you can also see in the upper right hand corner of the document posted, this complaint is filed against James de Wet and not FXCM. Like most firms, FXCM gives clients the ability to assign limited power of attorney over their account to allow a third party to trade their account. As long as FXCM holds a limited power of attorney authorizing a trader to trade an account, which the account owner has signed, then the account is opened and the trader is allowed to trade the account. Once the account is opened both the trader and the client have access to real time statements on the account and the limited power of attorney can be revoked at any time by the account owner. While FXCM vets and performs heavy testing on the managed accounts that we refer accounts to, if a client wishes to assign limited power of attorney over their account to someone that FXCM is not recommending to them, then we do not feel it is our responsibility to intervene in that process outside of the normal due diligence done when anyone opens an account. With this being said, we do have controls in place to try and alert clients who are potentially being defrauded to that fact (the strongest of which is real time reporting capability over the account which is given to the account holder so that he can view activity in real-time) and have shut accounts down in the past to avoid potential situations like the one listed in the above complaint. So, long story short here, while it is unfortunate that this happened, it is my opinion that FXCM was not at fault here, and I feel that the fact that we were not named as a defendant in this case is further evidence of this. My response to the question of FXCM offering "forex futures trading accounts" There has been much debate among the regulators as to the definition of the spot forex market, which is what FXCM and firms like us offer traders access to. In the past, I would assume because of the two day settlement period that is characteristic of the spot foreign exchange market, the CFTC was referring to trading done off exchange as forex futures trading, as they have in the complaint referenced above document. As you can see from the below link, they now refer to the spot fx market as leveraged off-exchange foreign currency contracts. http://www.nfa.futures.org/news/newsNotice.asp?ArticleID=1781 The above definition is a more accurate definition in my opinion of what FXCM offers to clients today, it is the only product that we have ever offered, and it was the product that James de Wet was trading when the complaint you referenced was filed. When I say currency futures, and I think most industry professionals will agree here, I am talking about currency trading that is done on an exchange like the CME, which as I stated in my last post, FXCM does not currently trade and has never offered to clients.
Thanks for replying. I understand. The text of the complaint against de Wet says "futures," which most people, as you said, take to mean exchange-traded products.
more info . this is from TradingClinic.com . For more information contact: Karen Wuertz (312) 781-1335, kwuertz@nfa.futures.org NFA takes emergency enforcement action against Boston forex firm, United Global Markets LLC June 28, Chicago - National Futures Association (NFA) has taken an emergency enforcement action against United Global Markets LLC (UGM), a Futures Commission Merchant and Forex Dealer Member located in Boston, Massachusetts. UGM acts as a counterparty to customer accounts trading in off-exchange foreign currency (forex) transactions. The Member Responsibility Action (MRA), effective immediately, prohibits UGM from soliciting or accepting any additional customer accounts or funds. In addition, the action prohibits UGM from accepting or placing trades for customer accounts except for the liquidation of existing customers. NFA took the action because UGM failed to demonstrate to NFA that it is in compliance with minimum capital requirements. The action will remain in effect until UGM has demonstrated that it has at least $1.5 million in adjusted net capital and provides NFA with a certified financial statement prepared by an independent public accountant who is registered under Section 102 of the Sarbanes-Oxley Act. UGM may request a hearing before NFA's Hearing Committee. NFA is the premier independent provider of innovative and efficient regulatory programs that safeguard the integrity of the derivatives markets.
If they are a FCM (which it looks like they might be, "CMC Markets" on this list) then they will be listed on the CFTC site. http://www.cftc.gov/files/tm/fcm/tmfcmdata0704.xls
FXCM Rep 1 - David, To any discerning trader your befuddling explanation of what happened in this matter begs for a fuller investigation. "Where there's smoke there's fire." "Buyer be 'ware."
i trade with cmcforex and they only show 2.2 million . Thats not good with the minimum being 1 million. Oanda == 44million gft === 48 million Dont want to be caught in a situation the refco a few years ago. Anyone know about Cmc . I like there spreads because i daytrade . Thinking of going to OANDA . I dont normally trade during the news anyway.
http://www.forexfraud.com/ Every few years: http://www.theage.com.au/articles/2003/11/20/1069027253090.html Current: http://forextradingfraud.com/ c
For anyone who may not be familiar with the term, funds designated as segregated are required by a regulatory body to be held in separate accounts from a firmâs other accounts. In addition to this funds designated as segregated funds are considered secure creditors and as such receive priority in the event of a firmâs bankruptcy. When opening a forex trading account with a firm registered with the FSA like FXCM UK, your funds are held in a segregated account and therefore your receive the same protection from that as you would when opening a futures trading account in the US. Sincerely, David Waring Managing Director FX Business Development Forex Capital Markets LLC 32 Old Slip, 10th Floor New York, NY 10005 Tel (212) 897-7660 Fax (212) 897-7669 Email: dwaring@fxcm.com
Check out your FCM on this 'real' list: Note FXCM is NOT in trouble based on this recent report.... http://www.cftc.gov/files/tm/fcm/tmfcmdata0704.pdf And always ask if your broker has two other things; 1. Segregated accounts for your money 2. A Fidelity 14 bond to protect YOU from employee misdoings. Be diligent....don't overuse leverage and don't trade what you can't afford to lose...including the leverage! Shar